Social Media as an Advertising Tool Essay Example

Social media is a phenomenon that greatly transformed the business landscape and Hudson, M. (2020) said that it is an internet communication tool that allows users to broadly share content and engage with the public. It encompasses a wide range of websites and applications leading to being one of the major channels for a business to engage with its customers.  The rise of social media in the fast-paced society gave a competitive advantage among the businesses that chose to use and adapt this kind of platform to advertise the product and services they offer. In the present technology driven world, social media have become an avenue where online resellers can extend their advertising to a wider range of consumers and gain great marketing opportunities for businesses of all sizes. (Jindoliya, D., 2017)

Nevertheless, social media in advertising have replaced traditional marketing communication. Resellers try to persuade buyers through some online events such as live or simple as posting in their social media accounts about the product they sell. Online sellers say that "what you can see, is what you can get", but sometimes there are complaints about the quality of the product which leads to a bad image of the resellers and their shop that also result in a low of sales. And due to some unexpected price increase of the products in the market, resellers had no choice but to keep up with it and sell those products with a higher price that cause a fewer buyer to them. Another challenge that resellers face is a sudden stock out, wherein there is no available product in the market. According to Chen et al. 2011 online communities are now a place to share information and gain knowledge about products and services. That is why most of the buyers depends their purchase on what they see in the feedback or review of the product that helps them a lot.

The development and widespread use of social media platforms provides an opportunity for online resellers to fully engage in advertising the products they offer to a larger number of potential customers. In this way, the usage of social media as an advertising tool has become one of the influential virtual space that is greatly used to promote business online as it obtains a reasonably low cost of entry. As a return, it reduces the cost needed to sell products that allows online resellers to gain revenue and earned more profit which proves the reality that social media advertising has greatly affect the financial performance of each online business. This study, therefore, intends to determine the effectiveness of social media advertising and focuses on how this platform influences the financial performance of an online reseller. Globally, many researches have been carried out related to this study but all of these researches are either generic or conducted in the international perspective by keeping in view of their own culture and business atmosphere. In this regard, more research on this topic should be demanded since this kind of study is not yet conducted in our country. Moreover, this paper will provide a detailed and thorough study to examine the relevance between the effectiveness of social media advertising in the perspective of Filipino online reseller and how this approach affects their financial performance.